SACRAMENTO, California — Democratic Gov. Gavin Newsom’s office on Friday released the most detailed explanation to date of a much-touted wildfire liability proposal.
What happened: On Friday, Cynthia Stein, Newsom’s senior counselor for Los Angeles recovery, sent a letter to Los Angeles County Supervisor Kathryn Barger detailing the governor’s proposal. The letter, which was shared exclusively with POLITICO, was in response to a missive Barger sent Wednesday sharing concerns from her constituents, Eaton Fire survivors.
Why it matters: Power companies, insurance firms and wildfire survivors are all eager to learn the details of Newsom’s proposal which has not yet been introduced as a bill, though there are only two weeks left in the legislative session.
Context: Stein’s letter makes it clear that the outcome of PG&E’s 2019 bankruptcy is driving the Newsom administration’s work on this issue. During that process, wildfire victims became “unsecured creditors competing in federal bankruptcy court,” Stein wrote, because victims had to compete for funds with insurance companies, hedge funds and local governments.
